The Department of Energy (DOE) says it is processing the termination of 105 renewable energy (RE) projects due to non-compliance with established timelines. The majority of these contracts were awarded in 2017 and 2019, with causes for delay including difficulty in securing possessory rights and completing the necessary system impact studies (SIS) that assess the effect of proposed projects on the national grid.
According to the DOE, 88 of the 105 projects are either behind in their pre-development stages or stagnant, comprising 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass projects. To address these issues, the DOE is implementing a clear contract termination process while enhancing the monitoring of RE projects through regular evaluation and updated guidelines aimed at streamlining the process.
DOE undersecretary Rowena Guevara emphasized the government’s commitment to timely project execution, saying that contracts deemed non-performing will be reassigned to more capable developers. This initiative is intended to accelerate project timelines and bolster investor confidence in the nation’s renewable energy objectives.
In June, the DOE introduced a revised omnibus guideline for the award and administration of RE contracts, which included measures to identify non-serious developers and to require a certificate of authority (COA) prior to contract signing. The COA enables developers to secure necessary permits and conduct surveys early in the process, facilitating better preparation and efficient project implementation.
Guevara said, “These streamlined procedures are designed to promote investments in the renewable energy sector by reducing bureaucratic hurdles and avoiding service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape.”
